Capital Allowances Act 2001 section 246

Miscellaneous

Section 246 deals with administrative and interpretive provisions that support the operation of the additional VAT liabilities and rebates rules in Chapter 18.

• HMRC must make all necessary assessments and adjustments to give effect to the additional VAT liability and rebate provisions in sections 241 to 245.
• The "connected persons" definition in section 232 applies when restricting a buyer's qualifying expenditure under sections 242 and 243.
• This ensures that tax computations are correctly revised when additional VAT liabilities or rebates arise after the original capital allowances claim.
• The connected persons rule is relevant where transactions involve related parties, as it affects how qualifying expenditure is restricted in both general cases and sale and finance leaseback arrangements.